NANDLAL,PATNA V. ITO, PATNA

ITA 16/PAT/2023

AI Insights

The case involves an appeal by Nandlal against the order of the Commissioner of Income Tax (Appeals) concerning the assessment of capital gains for the Assessment Year 2015-16. The capital gains were assessed by the Assessing Officer due to the execution of a Joint Development Agreement (JDA) concerning Nandlal's land. The assessee contended that the JDA did not mature as the developer failed to construct and hand over the developed property, and thus, no income was earned or accrued. The Tribunal found that the matter required a factual examination and set aside the CIT(A)'s order, directing the Assessing Officer to re-assess the issue after considering the assessee's plea.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471234 (ITAT-PATNA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Condonation of delay; Set aside; Capital Gains
• Section: 250; 20

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PATNA BENCH, VIRTUAL HEARING AT KOLKATA Before SRI SANJAY GARG, JUDICIAL MEMBER & SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER I.T.A. No.: 16/PAT/2023 Assessment Year: 2015-16 Nandlal ………….. Appellant 456B, Neura Colony, Khagaul, Patna-801105, Bihar. (PAN: AMNPN0421D) Vs. ITO, Ward-6(3), Patna .............. Respondent Appearances: Appellant represented by: N o n e Respondent represented by: Shri Ashwani Kr. Singal, JCIT Date of concluding the hearing : 21.01.2025 Date of pronouncing the order : 21.01.2025 ORDER Per Sanjay Garg, Judicial Member: The captioned appeal has been preferred by the assessee against the order dated 01.11.2022 of the Ld. Commissioner of Income Tax (Appeal), National Faceless Appeal Centre, Delhi [hereinafter referred to as Ld. ‘CIT(A)’] u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) for Assessment Year (AY) 2015-16. 2. The appeal of the assessee is time barred by 20 days. A separate application for condonation of delay has been placed in file. Considering the shortness of the delay period, delay in filing the appeal is hereby condoned. 3. The sole issue involved in this appeal is relating to the assessment of capital gains made by the Assessing Officer on account of execution of Joint Development Agreement (JDA) by the assessee in respect of his land. No one I.T.A. No.: 16/PAT/2023 Nandlal, AY : 2015-16 Page 2 of 3 has put an appearance on behalf of the assessee despite notice. However, on perusal of the grounds of appeal as well as after hearing the Ld. DR, we are of the view that the matter can be decided after taking into consideration the plea of the assessee, therefore, we proceed to decide the matter 4. The Assessing Officer, in this case, assessed the capital gains observing that the assessee had executed a JDA with the developer and that on execution of the JDA, transfer of the land as per the provisions of section 2(24) of the Act was complete. He, therefore, calculated the notional income that accrued to the assessee on execution of the JDA. However, in the grounds of appeal, the assessee has specifically pleaded that the said JDA did not mature, the developer failed to make construction and handover the developed property to the assessee. That the transfer of the property was not complete on the execution of the development agreement. That neither any income has been earned nor accrued to the assessee. Considering the aforesaid plea, the matter is required to be factually examined by the Assessing Officer. We, therefore, set aside the impugned order of the Ld. CIT(A) and restore the matter to the file of the Assessing Officer with a direction to verify the aforesaid contention raised by the assessee and, thereafter, to make the assessment afresh on this issue. Needless to say, the AO will give proper opportunity to the assessee to present his case and thereafter to decide the matter in accordance with law. With the above observation, the appeal of the assessee is treated as allowed for statistical purposes. 5. In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open Court. Sd/- Sd/- [Sanjay Awasthi] [Sanjay Garg] Accountant Member Judicial Member Dated: 21.01.2025 J.Dey (Sr. P.S.) I.T.A. No.: 16/PAT/2023 Nandlal, AY : 2015-16 Page 3 of 3 Copy of the order forwarded to: 1. Appellant : Shri Nandlal 2. Respondent : ITO, Ward-6(3), Patna 3. CIT(A), NFAC, Delhi 4. CIT 5. CIT(DR), Patna Bench, Patna. 6. Guard File. //True copy // By order Assistant Registrar ITAT, Patna Benches Patna "